Monthly Archives: January 2023

When the iron fist grips too hard


Island retreat: Malaysia is a plural society with people of different beliefs who enjoy visiting Langkawi for holidays.

WHAT irony to read two contrasting news items on the same day – Dubai has scrapped a 30% alcohol tax, ended personal alcohol licences and eased other related measures.

It was reported that the move was believed to be an attempt to make Dubai more attractive to foreigners, in the face of competition from its neighbours.

Saudi Arabia is already heavily promoting music tourism in Jeddah with rave parties featuring top international acts. Dancing, involving the opposite sex, is allowed.

Over here in Malaysia, we read a report about the Kedah PAS-led state government suggesting that the sale of alcohol would be controlled in Langkawi.

It is not an outright directive to ban alcohol yet, but it is enough to frighten off hoteliers, who fear that it will kill the tourism industry as well as the many duty-free outlets run by Malaysians.

Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor had reportedly made the suggestion last November, saying the state government would restrict the sale of alcohol in public including at duty-free shops as well as in rural areas on the mainland.

This comes after the state government ordered the closure of gaming outlets in Kedah.

Business groups and political parties with non-Muslim membership have already said that shutting down legitimate gaming outlets, owned by number forecast operators (NFOs), would only benefit criminals.

Each year, the Federal Government loses about RM2bil in taxes due to illegal gambling.

Muhammad Sanusi has reportedly said that he had instructed local authorities to monitor the relevant premises to ensure no illegal business was being conducted.

Well, it would be the job of the police to nab illegal bookies. Surely these operators are not going to operate openly, and how on earth would the local authorities be able to track them?

Again, there is this irony – illegals are known to take bets on simple WhatsApp messages from their punters but legitimate NFOs are not allowed to go digital by the Finance Ministry. Go figure.

Likewise, such statements by PAS leaders will not help Langkawi tourism. Not everyone goes on a drinking binge and gets drunk, but some visitors prefer a few glasses of wine during meals to make it complete.

Likewise, having a few beers at the beach under the burning sun is just something natural and innocent to many others.

Of course, we know that Muslims are forbidden to drink, and non-Muslim businessmen understand and respect that.

But why impose that on non-Muslims when Malaysia is a plural society? Even minorities have rights, too.

Similarly, if Muslims, as a minority, in Europe and the United States, wish to wear the hijab and build mosques, their religious rights must be respected and supported.

It is a fallacy and a poor argument to claim, as it is often done by PAS leaders, that all religions forbid drinking.

Well, the Bible clearly states that Jesus turned water into wine at a wedding, his first miracle, and wine is used by many churches as part of the communion service, although Ribena is the favourite option in Malaysia.

The key words here are freedom of choice and moderation. Everything that we indulge in must be in moderation.

It is important that our politicians, including from PAS, be aware that investors watch their language when the subject of race and religion crops up. They do not feel comfortable when religion is used as a tool.

Rules are made by these “politician theologians” while investors are more concerned with international values on law and justice than the conservative, religious laws, narrowly interpreted by these people.

Without doubt, PAS is encouraged by its huge wins in the recent general election, and with state elections coming up in six months, we will hear more of such PAS narratives.

To its audience, its leaders would want to be seen as holier-than-thou, although the reality can be entirely different – but then, there are many who believe in what they preach.

These PAS personalities need a study trip to Dubai and Jeddah to see for themselves how the Arabs have moved on.

They know the oil will run out one day when vehicles will run on electricity, a cleaner option. Tourism and financial hubs are low-hanging fruits, and the Arabs are getting ready for that.

So, let’s take it easy, be real and encourage investors and tourists to come here and spend.

Politics to Acting

 

United we stand

And we know exactly what happens if we’re divided.

IF 2022 was an extraordinary year, in which Malaysia ended up with a hung government after the general election, followed by the formation of a Unity Government, then we can expect 2023 to be an equally fast-paced one.

The real test for our new Prime Minister and his Cabinet members will finally begin. The 100 days will be over soon, and Malaysians will be especially critical by the time that period ends.

There is sufficient time to learn the ropes at their respective ministries, so they will come under greater scrutiny then, and rightly so, too.

The most important matter will be on Feb 23 when Datuk Seri Anwar Ibrahim is scheduled to present the 2023 Budget.

The three-week Dewan Rakyat meeting, starting Feb 13, will be allocated entirely for the process of presenting the Budget since previously only a mini budget was tabled.

It will be an important speech because we expect strong financial headwinds this year, but with China reopening its borders, we also hope that its trading with the world will resume since consumer confidence remains strong.

The news, for the moment, concerns Chinese visitors bringing their Covid-19 problems to our shores, but what is not highlighted is that the republic’s logistics systems will now pick up steam again.

Many of us recall watching Anwar presenting his Budget speech as finance minister 30 years ago under the Mahathir administration. It was a four-hour long affair, and it was the longest on record.

Flowery, ostentatious and uncommon Bahasa Malaysia words were used, which gave the media a massive headache, as pressmen tried to make sense of it. I know because I covered it as a Parliament reporter.

With due respect, Datuk Seri, please keep your upcoming Budget speech short and precise. Use simple Bahasa Malaysia words.

Some references to religion and literature will be tolerated, though unnecessary. It won’t help us economically, so get to the point.

In Britain, the Chancellor’s speech is only about 15 minutes, so we surely don’t need a marathon session to get points across.

A challenge for the government would be to raise revenue, including via tax collection. While the Goods and Services Tax (GST) remains the most effective approach, we can be sure that it won’t surface for a while at least.

A weak government made up of different political parties would not easily facilitate talk of GST, which is unfortunate because the GST has the best net spread in collecting consumption taxes.

Given the lack of political goodwill, we shouldn’t be surprised if pressure is continually applied on high imports and excise duties on liquor, cigarettes and gambling. Ultimately, it shouldn’t be too prohibitive, though.

Let’s be honest, PAS state governments shutting down legitimate gaming operators may make the party look good to its supporters, but it will only benefit the illegal bookies.

Each year, the government loses about RM2bil in taxes due to illegal gambling. It’s ironic because the criminals and corrupt enforcement officers escape richer while tax-paying gaming companies, number forecast operators (NFOs) and breweries end up paying the price even though they contributed RM1.86bil in income taxes in the last two financial years.

There’s no need for more draws but let NFOs conduct online gaming. It will help generate more tax revenue without increasing the frequency of draws.

Right now, the illegal establishments even accept bets via WhatsApp, while NFOs can’t, which makes little sense.

In the case of breweries, there’s an estimated tax revenue loss of RM1bil a year because of illicit alcohol, caused mainly by smuggling at the borders, especially between Sarawak, Kalimantan and Brunei. Likewise, the Thai border.

Common sense and practicality are needed in dealing with these issues, but unfortunately, our politicians prefer to take the easy way out.

Even if PAS comes to power and imposes a Taliban-style regime, gambling, drinking and even prostitution will still exist. If not, consumers will just cross over to Thailand, like they do in Kelantan.

We surely can’t afford to keep giving special allowances to our civil servants and pensioners.

Previous Barisan Nasional government leaders assumed the civil service was a fixed asset and continuous bonuses were offered believing that civil servants would remain loyal to Umno, in particular.

But civil servants have their dignity and pride. The Putrajaya parliamentary constituency was ceded to Perikatan Nasional in the recent general election.

If Malaysia wants to compete on the global stage and attract multinational companies to Malaysia, it shouldn’t be overly concerned by putting qualified non-Malays in government-linked corporations. We’re at a point where Malays are already qualified and confident enough.

As China and India become more important, we should tap Malaysian assets with our traditional links to these two countries. Malaysia has an advantage that other Asean countries don’t, Singapore apart, of course.

Malaysia can’t continue with the old ways of doing things. This is 2023. The world has become more diverse with multi-ethnicity regarded as a source of pride and an asset.

Even a conservative society like Saudi Arabia has changed. It was unimaginable before, but some degree of liberalism has permeated its society now.

Malaysians want Anwar to succeed and stay on because we simply can’t afford another change of PM. It would be disastrous otherwise.

He has succeeded in becoming the first PM from a multi-racial party and is now the head of a Unity Government comprising different coalitions.

It’s truly a remarkable achievement. The jury was out on him becoming PM, but he has, and now he only needs to leave a legacy behind. He just needs to do what is right for Malaysia because he has nothing to lose at his age.

There will be bumps in 2023 because six months from now, state elections will be held in Kelantan, Terengganu, Penang, Kedah, Selangor and Negri Sembilan.

The relationship of the partners in the Unity Government will be tested as they could compete against each other, and Perikatan may end up the beneficiary again. Meanwhile, the party polls in Umno will also have an impact on the Unity Government if there’s a leadership change.

It’s a double-edged sword because if the status quo remains, it will make renewal and revitalisation in Umno difficult.

But there are bigger things than politics in 2023. We have already wasted too much time on it, so let’s roll up our sleeves and do the real work instead.

Malaysia needs to be back on the world stage for the right reasons, and it feels like there’s plenty of goodwill now towards our nation. So let’s not throw it away.

Wishing all Malaysians a Happy New Year and may 2023 be a good and productive one for all of us, especially in uniting Malaysians.